A driver’s leg amputation causing total occupational incapacity warrants compensation for 100% future earning loss.

The claimant, a paid bus driver, was injured in a head-on collision with a truck on 31 August 2010.

His injuries included fractures, and his right leg was amputated.

He claimed compensation of ₹15,00,000.

The Motor Accident Claims Tribunal, Jetpur, awarded ₹5,20,600 in Motor Accident Claim Petition No. 422 of 2010.

The claimant appealed, contending that the compensation was inadequate.

Whether the Tribunal’s assessment of compensation adequately accounted for the claimant’s amputation and resulting loss of earning capacity as a driver.

Whether the claimant was entitled to enhanced compensation and, if so, in what amount and on what terms.

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against an award of the Claims Tribunal.

The Act’s governing principle is that compensation must be just, fair, reasonable and assessed holistically, rather than niggardly.

Relying on Raj Kumar v. Ajay Kumar, (2011) 1 SCC 343, as quoted in M. Paramesh v. VRL Logistics Ltd., 2026 INSC 655, the Court stated that permanent physical disability is not automatically equivalent to loss of earning capacity; the Tribunal must assess the disability’s functional effect in light of the claimant’s occupation and circumstances.

The Court also treated loss of future prospects as integral to just and fair compensation.

The claimant’s occupation as a driver required the continuous use of both legs, and the amputation of his right leg substantially affected his capacity to perform that work.

The Court treated the resulting loss of earning capacity as 100% in the circumstances of this case.

It held that the Tribunal’s award of compensation for actual loss of income did not properly address the claimant’s future earning loss following the injury.

The Court recalculated compensation to include ₹8,19,000 for future loss of income, together with amounts for pain and suffering, medical expenses, diet and attendant expenses, transportation, prosthetic and artificial legs, and loss of amenities.

The revised total was ₹15,24,000; after deducting the ₹5,20,600 already awarded, the enhancement was ₹10,03,400.

The Court awarded an additional ₹10,03,400, carrying interest at 8% per annum from the date of filing the claim petition until realisation.

The Insurance Company was directed to deposit the enhanced amount with interest before the Tribunal within 12 weeks; the remaining directions in the Tribunal’s award were left unchanged.

The Tribunal was directed to disburse the amount in accordance with the judgment and applicable procedure.